More earnings news emanated from the American banking sector Thursday.
Morgan Stanley (NYSE: MS) reported net revenues of $11.7 billion for the third quarter ended September 30, 2020 compared with $10.0 billion a year ago. Net income applicable to Morgan Stanley was $2.7 billion, or $1.66 per diluted share, compared with net income of $2.2 billion, or $1.27 per diluted share, for the same period a year ago.
The banking giant says the current quarter included intermittent net discrete tax benefits of $113 million which had an impact of $0.07 per diluted share.
Said CEO James P. Gorman, "We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent, high returns. The completion of the E*TRADE acquisition, the subsequent ratings upgrade from Moody’s, and the recently announced acquisition of Eaton Vance significantly strengthen our Firm and position us well for future growth."
Institutional Securities net revenues reflect strong performance across all businesses with higher results in sales and trading and strength in equity underwriting.
Wealth Management delivered pre-tax income of $1.1 billion with a reported pre-tax margin of 24.0% (or 25.3% excluding the impact of a regulatory charge in the third quarter).
Results reflect strong fee-based flows and significant increases in bank lending and deposits.
Investment Management net revenues increased by 38% driven by record asset management fees and AUM.
MS shares picked up 30 cents to begin Thursday trading at $50.95
